The formula for price elasticity of demand that is used in practice
A)usually drops all minus signs.
B)usually takes on different values at different points on the demand curve.
C)may calculate the percentage change in price between P1 and P2 as "(P2 − P1) as a percentage of (P1 + P2)/2."
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options are correct statements about the formula for price elasticity of demand that is used in practice. The formula commonly drops all minus signs to avoid confusion and takes on different values at various points on the demand curve. Additionally, the percentage change in price is often calculated as "(P2 − P1) as a percentage of (P1 + P2)/2."

The Formula for Price Elasticity of Demand That Is Used